Wireless behemoth Verizon is slated to report its Q3 2023 results on October 24. We estimate that Verizon revenue will come in at about $31.7 billion for the quarter, roughly in line with consensus estimates and down 1.7% compared to last year. We project that earnings will stand at $1.13 per share, compared to consensus estimates of $1.12 per share. So what are some of the trends that are likely to drive Verizon’s results? See our interactive dashboard analysis on Verizon Earnings Preview for more details on how Verizon’s revenues and earnings are likely to trend for the third quarter.
Amidst this financial backdrop, VZ stock has suffered a sharp decline of 50% from levels of $60 in early January 2021 to around $30 now, vs. an increase of about 15% for the S&P 500 over this roughly 3-year period. Notably, VZ stock has underperformed the broader market in each of the last 3 years. Returns for the stock were -12% in 2021, -24% in 2022, and -20% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 10% in 2023 – indicating that VZ underperformed the S&P in 2021, 2022, and 2023. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Communication Services sector including GOOG, META, and NFLX, and even for the megacap stars TSLA, MSFT, and AMZN. In contrast, the Trefis High Quality Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could VZ face a similar situation as it did in 2021, 2022, and 2023 and underperform the S&P over the next 12 months – or will it see a recovery?
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.